By Claudia Assis, MarketWatch
Shares of U.S. airlines and of plane maker Boeing Co. rose on Thursday after the U.S. government's $2 trillion stimulus package cleared the Senate hurdle despite last-minute disagreements.
Boeing (BA) shares rose more than 15%, extending their rally to a fourth day and on the heels of a 25% gain on Wednesday.
The NYSE Arca Airline index was 7% higher, compared with gains under 4% for the S&P 500 index.
The "mother of all bailouts" sets aside about $88 billion in aid for the aviation sector, analyst Robert Stallard with Vertical Partners said in a note Thursday.
There's about $42 billion in grants to airlines and airports and air cargo operators aimed at support workers. Loan and loan guarantees making up the rest, including $17 billion for businesses related to national security.
Related: Airlines move to cut capacity and rein in costs as coronavirus effect intensifies ()
"The situation for the U.S. airlines remains pretty dire," Stallard said.
In the aftermath of the Sept. 11, 2001, attacks, Congress passed a $15 billion bailout package to airlines.
See also:Senate approves $2 trillion coronavirus-aid bill, sending measure to House for vote ()
Virtually all airlines have cut down on capacity, instituted hiring freezes and cost-cutting measures, and had said they wouldn't be able to survive the year without help.
"Elsewhere in bailout land," Stallard said, industry group U.K. airlines is requesting government aid and a six-month suspension in air passenger duty, low-cost carrier Norwegian Air Shuttle ASA has given creditors a forbearance note, a required step before getting loan support from the Norwegian government, and Singapore Airlines has is on the verge of receiving a capital injection from the government.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 26, 2020 11:13 ET (15:13 GMT)
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